In an effort to increase its contribution to the emirate’s economy by 2030, the Dubai International Financial Centre is establishing a Global Family Business and Private Wealth Centre. The DIFC Authority’s board of directors has authorised the world’s first business centre, which will be formally opened next month, on September 1.
The centre will bring global family-owned enterprises, ultra-high net worth individuals (UHNWIs), and private wealth together in one place to assist maintain and strengthen the sector, as well as provide access to a comprehensive range of support services to allow solid legacy and succession planning.
The centre is also intended to encourage family companies and UHNWIs from the area and around the world to set up shop in Dubai. The Dubai free zone expects that by bringing together global family-held firms, private wealth offices, and UHNWIs in one place, the new centre would help the industry develop.
According to Boston Consulting Group, UNHWIs accounted for around 41% of the UAE’s financial wealth in 2021, and this figure is likely to rise to 43% by 2026. This figure gives perspective to what DIFC hopes to achieve by creating the centre, which it claims is the world’s first of its sort. According to an earlier forecast by Knight Frank, the number of UNHWIs would increase by 9.3% in 2021, with the addition of 52,000 persons with a net worth of $30 million or more.
The governor of the DIFC, Essa Kazim, stated that many family companies in the UAE and the Middle East will transfer a large amount of money – almost $1 billion (Dhs3.67tn) – to the next generation over the next decade. He said, “(this) illustrates the urgent need to provide them with specialist, consolidated support to help them grow.”
